VIP Clothing Limited has informed the Exchange regarding Investor Presentation
May 20, 2019
To,
To,
A ( viP) V
The Listing Department, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.
The Listing Department National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra-Kurla Complex Bandra (East), Mumbai-400 051.
Scrip Code : 532613
Trading Symbol : VIPCLOTHNG
Subject:
Investor Presentation - Q4 - F.Y. 2018-19.
Dear Sir/Madam,
Pursuant to Regulation 30 and any other applicable regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 please find enclosed Investor Presentation for Q4 F.Y. 2018-19, the same has been uploaded on the website of the Company www.vipclothing.in.
Requested you to kindly take the same on your record and disseminate the same on your website for the information of the public at large.
Thanking you
Yours faithfully, For VIP Clothing Limited
Q "" "'1"' ~ j _Q,7 -
Chief Financial Officer & Company Secretary Encl : As above.
VIP Clothing Ltd . (Fo 1crll kn "n ,; M, xwell lndustnes Ltd.)
Registered Office: C-b, Street No. 2.2. MlDC. Andhcn (E), Mumbai - 400 093. India.
CIN: Ll8101MH1991PLCOS9804
T: +91 (22) 28257624 /27/33 F· +9\ (22) 2837\023 Export Div. T: +91 (22) 28256788 F·+9\(22)2S31\024
• ~ W: www.vipclothing.in
E : info@viporg.com
Investor Presentation MAY 2019
11
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by VIP Clothing Limited. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.
2
Table of Contents
Q4 & FY19 Financials
Company Overview
Key Strengths
Business Strategy
Industry Overview
Financials Highlights
04 07 23 25 27 30
Q4 & FY19 Financial Highlights
Q4 & FY19 Financials
Particulars Revenue from operations Gross Profit GP Margin (%) EBDITA EBDITA Margin (%) Other Income Depreciation and amortization expense Finance costs PBT before Exceptional Item PBT Margin(%) Exceptional items Profit / (Loss) from continuing operations Profit / (Loss) from discontinuing operations
Q4 FY19 402.3 184.9 46.0% 8 1.9% 5.5 8.1 22.4 (17.2) -4.3% 0.0 (16.8) 0.0
Q4 FY18
FY19
556.4 236.1 42.4% 3 0.5% 3.6 8.2 19.6 (21.1) -3.8% 3.4 (24.6) (0.4)
2,074.6 863.0 41.6% 36 1.8% 19.7 33.1 88.1 (65.1) -3.1% 0.0 (61.9) 0.0
(₹ in Million) FY 18 2,223.8 940.4 42.3% 105 4.7% 12.8 33.5 109.3 (25.1) -1.1% (0.2) (29.9) (0.9)
Profit / (Loss) for the year (Total)
(16.8)
(25.0)
(61.9)
(30.7)
Other Comprehensive Income Total Comprehensive Income for the period
1.1 (15.6)
4.2 (20.8)
(2.2) (64.1)
4.2 (26.5)
5
Balance Sheet
Particulars
FY19
FY18
ASSETS Non-current assets Property, plant and equipment Intangible assets Financial assets Investments Other Other non-current assets Sub-total - Non-Current Assets Current assets Inventories Financial assets Trade receivables Cash and cash equivalents Bank balances other than above Loans
Other
Current Tax Assets (Net) Other current assets Sub-total - Current Assets TOTAL - ASSETS
386.50 1246.07
410.13 1,250.20
0.12 10.01 3.66 1,646.34
0.12 12.42 3.70 1,676.56
1,116.95
1,134.89
604.42 0.16 57.06 2.87
0.08
1.34 142.07 1,924.94 3,571.29
651.65 0.07 51.02 2.39
0.10
0.70 118.44 1,959.25 3,635.81
Particulars EQUITY AND LIABILITIES Equity Equity Share capital Other equity Sub-total - Shareholders' funds Non-current liabilities Financial liabilities Borrowings Other financial liabilities Provisions Deferred tax liabilities (net) Sub-total - Non-current liabilities Current liabilities Financial liabilities Borrowings Trade payables Other financial liabilities(other than specified above) Provisions Other current liabilities Sub-total - Current liabilities TOTAL - EQUITY AND LIABILITIES
(₹ in Million)
FY19
FY18
165.19 1,714.03 1,879.23
165.19 1,781.18 1,946.37
2.17 58.24 11.68 536.07 608.17
824.61 207.53
25.64
21.98 4.13 1,083.89 3,571.29
3.14 52.30 9.02 540.33 604.79
797.95 240.85
21.45
21.22 3.19 1,084.66 3,635.81
6
Company Overview
Company Overview
01
VIP Clothing Limited was incorporated in the year 1991 to satiate the discerning taste of Indian Consumer.
02 Engaged in Business of
Manufacturing and selling innerwear, the Company went Public in year 1993.
03
VIP has in-house manufacturing facility located in Gujarat and Tamil Nadu. Accredited with TUV- ISO 9000 certificate that reflects its emphasis on Quality Management System, designing, manufacturing and delivery.
One of India’s leading intimate apparel company providing intimate wear to consumers across various segments under different brands. VIP enrich and expand fashion quotient in multiple trends and style from inner comfort to fashionable garments
04
The Company possesses one of the widest and largest sales and distribution network for innerwear products
05
The Company focus is to become an International Symbol of Excellence through continuous customer satisfaction, innovation, manpower development, productivity improvement, quality improvement, cost reduction and time management
06
8
Sales & Distribution
Sales Mix
Network
85%
VIP has Pan India Presence with largest distribution network
12%
3%
Retailers – 35,000
Warehouses – 2
Sales & Marketing Professionals - 221
Brand Outlets – 2
Distributors & Wholesalers - 396
The globe is our canvas today. We enjoy long- standing relationships with our customers. We enjoy leadership position in our chosen geographies. Leveraging years of experience, we have developed a keen perception of the markets we operate in. Consequently our varied product profile has always been bolstered by unique strategies that go a long way in forging an indelible market presence.
9
Milestone
IPO of our Company. First company to get listed OTCEI
Incorporated as a Private Limited Company
Equity Shares were listed on BSE Limited
Investment of ~ ₹ 451 millions by Reliance Capital Partners
Listing on NSE
Golden Scale Trophy by CMAI- The brand of the year for men's innerwear
Delisting of the Equity Shares from the OTC Exchange of India
Sale of spinning division situated at Kollapalur, Tamil Nadu
1991
1993
2005
2006
2007
2008
2011
2012
2014
2015
2016
2017
2019
Awarded the Brand Leadership for Marketing Excellence by Indira Group of Institutes, Pune
License agreement for manufacturing, marketing, distribution and sale of Eminence Brand products
Right Issue of ~ ₹ 430 million to augment the working capital base of the Company
Launch of Premium Segment – VIP Regal and Frenchie Casuals
Sale of Factory Land and Building situated at Daman
of
Sale in-operative division situated at MIDC, Navi Mumbai
Sale of the processing house situated at SIPCOT, Perun durai, Tamil Nadu.
Change of Company’s name from Maxwell Industries Limited to VIP Clothing Limited
10
Infrastructure
Manufacturing Facility Umbergaon, Gujarat
Location
Products Manufactured
Facility details
Umbergaon, Unit)
GIDC Gujarat (Garmenting
Briefs, Vests, Trunks for Men & Juniors & ladies Panties, BRA
Garmenting unit; with fabric inspection, cutting, stitching, inspection & packing facilities
ironing,
Capacity
1,60,000 boxes per month
Manufacturing Facility - Thingalur, Tamilnadu
Location
Thingalur, Tamilnadu (Garmenting Unit)
Products Manufactured
Facility details
Briefs, Vests, Trunks for Men & Juniors & ladies Panties, BRA
Garmenting unit; with fabric inspection, cutting, stitching, inspection & packing facilities
ironing,
Capacity
2,20,000 boxes per month
11
Factory - Facilities
12
Product & Brand Portfolio
INNERWEAR
VEST VIP Bonus Premium; Bonus Classic; Bonus Knitshrunk; Nawab; Supreme ; Bonus Fab; Bonus Junior; Pro; Fresh Frenchie Elite; Oxy; Square; Neo;Flex; Ribs; Enticer
BRIEFS VIP Spector; Signor; Gold; Champ; Alpha; Apex; Designer; Fresh Frenchie Eurofit; Pro; Envy; Groove; Lows
Trunk VIP Advanta; Ultima; Unique; Punch Print; Punch Plain; Pic Pocket; Sigma; Boxer Frenchie Pixel; Beat; Neo
Boxer VIP Freakout Frenchie
OUTERWEAR
T- Shirt VIP Pulse Frenchie Crew
Muscle tee VIP Blaze
Track Pants VIP Trek Frenchie Jogger; Runner
Bermuda VIP Player Frenchie Relax
Socks Frenchie
13
Product & Brand Portfolio
INNERWEAR
Fundamental Bra Feelings Criss-cross; Dew; Charm; Cheer- up; Breeze; Pep; Snow; Nursing Bra; Feelings New mom
T-Shirt Bra Feelings Beam; Trendy; Glitz; Elle; Cosmo; Ornate Verve; Curve; Flair; Glam; Sparkle
Sports Bra Feelings Ease; Savvy; Rhythm, Evolve; Active; Vital; Edge; Zeal;
Panties Feelings Intimate; Dreamz; Moodz; Passion; Flora; Expression; Ultrasoft; Shy; Amelie
Camisole Feelings Princess; Elegance, Innocence; Poise; Cute; Shine; Smile
OUTERWEAR
Track Pants Feelings
Capri Feelings
T-shirts Feelings
Leggings Feelings
Night Suits Feelings
14
Brand and Advertising
Category Presence
Super Premium Segment
Premium Segment
Middle Segment
Mass Segment Unorganized Segment
15
Brand and Advertising
• Contemporary Classic’ brand catering to
sober tastes.
• Young edgy fashion’ brand meant for the
fashion conscious.
• Draw on the edgy imagery of the brand earlier & make it relevant for the times. • Advertised through mass media like TV & Print, high impact media hoardings and also extensive use of Digital media for youth International Models.`
connect. Use
of
• Draw on the 40+years heritage of underwear
‘authority’
on
claiming making.
• Advertised through mass media like TV &
Print and high impact hoardings
• Use of International Models in order to
be distinct from others.
• Positioned as ‘Real Contemporary’ brand meant for the modern woman’s need of ‘everyday essentials.
• Will have modern contemporary classics. • Advertised through mass media like Print / Magazines and rely on ‘sampling’ for inducing product trials and also extensive use of Digital media for youth connect & product range discovery.
16
Presence in format Stores
Large Format store tie -ups
E-commerce Tie -ups
17
Presence in format Stores
18
18
Key Awards and Achievements
Brand ‘VIP Frenchie’ as Power Brand of the year 2012.
“SUPERBRANDS” –The Economic Times – February 17th, 2012
“BRAND LEADERSHIP AWARD” for pioneering work in innerwear segment in India.
Golden Scale Trophy ( 2007- 2008 ) - The Brand of the year Men's Inner Wear By CMAI
Apex Award 2007 - " The Brand of the year -Women’s Inner wear " by CMAI
Apex Awards – 2006 : The Brand of the year - Men's Inner Wear By CMAI
19
The Board
Mr. Sunil J. Pathare, Chairman & Managing Director
Mr. Sunil J. Pathare, aged 46 years, is the Promoter and the Chairman & Managing Director of our Company.
He holds a Bachelor's degree in Commerce.
He looks after the overall management of the Company.
He has been awarded the “Entrepreneurship Excellence Award” by the Small and Medium Business Development
Chamber of India in 2007, Indira Group of Institutes award for Marketing excellence in March, 2012, Inside Fashion Brand
Award (VIP) for excellence in Retail.
Mr. Kapil J. Pathare, Whole Time Director
Mr. Kapil J. Pathare, aged 38 years, is the Promoter and the Whole time Director of our Company.
He holds a Bachelor's degree in Commerce and Masters in Business Administration (Entrepreneurship and Family Business).
He looks after the overall production activities of the Company.
Mr. Robin Banerjee, Independent Director
Mr. Robin Banerjee, aged 62 years, is the Non- Executive Independent Director of our Company.
He holds degree of Chartered Accountant , Cost Accountant and Company Secretary.
He has over 35 years of professional experience in finance and corporate management, including strategic planning,
mergers and acquisitions, corporate finance and strategic business development.
20
The Board
Mr. Gopal Sehjpal, Independent Director
Mr. Gopal Sehjpal aged 73 years, is the Non- Executive Independent Director of our Company.
He holds a Master's Degree in Arts (Philosophy) and a Post Graduate Diploma in Personnel Management.
He is also a member of the Institute of Management Consultants of India and a Life Member with the Bombay
Management Association, Indian Institute of Quality Management and Consultancy Development Centre (Ministry
of Science and Technology, Government of India).
Mr. Chetan Sheth, Independent Director
Mr. Chetan Sheth, aged 54 years, is the Non- Executive Independent Director of our Company.
He holds a Diploma in Production Engineering, awarded by the Board of Technical Examinations on behalf of the
Government of Maharashtra on May 22, 1987 and has over 26 years of professional experience in the
manufacturing engineering and corporate management.
Mrs. Meher Castelino, Independent Director
Mrs. Meher Bruno Castelino aged 73 years, is the Non- Executive Independent Director of our Company.
She has been associated with the Company since 2015.
She has headed the designing departments of export as well as local fashion houses.
She is the official writer for Lakmé Fashion Week since 2006 reporting all over the globe.
She has appeared in over 2000 live fashion shows around the globe, many of which were conceived and directed by her.
21
Management Team
Mr. Ashish Mandaliya CFO & Company Secretary
Mr. Mandaliya holds the degree of Chartered Accountant, Company Secretary and LLB.
He has an experience of more than 15 years in the field of finance and secretarial compliances.
Mr. Devendra Vyas Chief finance Controller
Mr. Vyas is a Chartered Accountant and holds a degree of Master’s in Business Administration
He has an experience of more than 17 years in variant industries
He has extensive experience in Costing, Accounting, MIS, Internal & Statutory Audit and Taxation
22
Key Strengths
Key Strength
Brand Recall the Brand recall value amongst to customer. VIP the aspirational average Indian.
caters of
needs
Distribution Network
large
a catering
distribution has VIP network various to geographies domestically as well as overseas.
Experience Team
& Experienced Professional Management Team Leading its way to higher peaks..
Promoters
Eye on Quality
VIP fabric quality, styling and packaging has made its consumers feel their graduation to a superior lifestyle. .
Product Portfolio VIP Leader is a reflection of company's commitment to provide practical and well at most reasonable prices. Strong brands across price and customer segments .
designed
products
Infrastructure State of Facilities Umbergaon .
at
Art Manufacturing and
Thingalur
Key Strength
Workmen Pool of over 2,500 skilled and unskilled workmen to cater to the product while demands maintaining quality standards.
Positioning The brand is positioned to be affordable and comfortable. Internationally accepted Quality, Stringent Quality check of all products..
24
Business Strategy
Capitalize on Growing Market Opportunities
Focus on Product Design
Focus on product design and development to cater to ever evolving fashion trends with stress on quality and packaging. .
Improving sales network
Augmenting the sales force and distribution network to enhance our product reach and availability.
Focus on Product Availability
Focus on - On Time In Full Supply. This will help us to better utilise our manufacturing capacities, improve product availability and better our inventory turnover.
Expand Product Portfolio
Capitalize on the Brand Recall by enhancing our product offering in various segments
Enhance Brand Visibility Promotion through intelligent Marketing & Advertising . Advertisement focussed towards creating a pull for our products
26
Industry Overview
Innerwear Segment Overview
Overview
Among the core apparel categories, innerwear appears to be a potential growth
category across all segments
The Indian apparel sector is expected to grow from ₹ 1,709 billion in 2010 to ₹
4,700 billion by 2020E, representing a CAGR of 10.6%.
Of this, the innerwear market currently valued at ₹ 14,339 crore (in 2011) is expected to grow to ₹43,721 crore by 2020E, growing at a CAGR of 13.2%, outpacing the growth of the overall apparel market.
Also, the women’s segment that has historically been smaller in size compared to the men’s segment is expected to grow at a faster pace (CAGR of 15% over 2010-2020E as compared to 10% CAGR in the men’s segment). The women’s innerwear segment is likely to touch ₹30,000 crore from the current ₹8,500 crore. On the other hand, the men’s innerwear segment is likely to grow from ₹5,800 crore in 2010 to Improving Indian demographics and increased preference for proper fits, sizes, etc. lend credence to the growth of organised players in the Indian innerwear market
₹13,700 crore in 2020E.
INDIAN INNERWEAR MARKET
50000
40000
30000
20000
10000
0
Growing at a CAGR of 13.2%
0 5 2 1 1
8 9 6 2 1
9 3 3 4 1
8 2 4 3 2
1 2 7 3 4
India’s Growing apparel Market
5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0
0 1 0 1
0 4 5 1
9 0 7 1
9 8 8 2
0 0 7 4
2005
2009
2010
2015
2020 E
Organised & Unorganised Market
120%
100%
80%
60%
40%
20%
0%
87%
86%
84%
13%
2005
14%
2009
16%
2010
75%
25%
60%
40%
2015
2020 E
2009
2010
2011
2015
2020 E
Organised
Unorganised
Source: ICICIdirect.com Research
28
Industry Overview
The Men’s Innerwear Market
The men’s innerwear market, in India, is increasing its base size at
a promising rate.
the men’s innerwear segment is likely to grow from ₹ 4,790 crore
in 2009 to ₹ 13,666 crore in 2020E.
On the basis of product pricing, this market is further subdivided into super premium, premium, medium, and economy segments. The economy segment contributes around 55% to the market, while the mid-price segment makes up 36%, the remaining 14% comes from premium and super premium segments. In these segments, the consumer seeks higher fashion orientation and higher comfort, as well as a strong brand name.
The Women’s Innerwear Market With growing consumption and shift from low-end to high-end products, the women’s innerwear segment is set to outpace the men’s innerwear segment expects the women’s innerwear segment to grow from 6,460 crore in 2009 to 30,054 crore in 2020E.
When it comes to price-wise segmentation,
the women’s innerwear market is dominated by products of mid-price and economy segment. These segments together contribute 80% of the market, while the remaining 20% comes from the premium and super premium segments. Like men’s innerwear, the mid- price and premium segments are expected to grow more rapidly within women’s innerwear categories.
35000
30000
25000
20000
15000
10000
5000
0
Women’s segment set to outpace Men’s segment
0 9 7 4
0 6 4 6
9 6 2 5
9 2 4 7
6 9 7 5
3 4 5 8
2 4 9 4 1
6 8 4 8
6 6 6 3 1
4 5 0 0 3
2009
2010
2011
2015
2020 E
Men's Women's
Source: ICICIdirect.com Research
29
Financial Highlights
Financial Highlights - Profit & Loss Accounts
Particulars Revenue from operations Gross Profit GP Margin (%) EBDITA EBDITA Margin (%) Other Income Depreciation and amortization expense Finance costs PBT before Exceptional Item PBT Margin(%) Exceptional Item (Gain) / Loss
Profit / (Loss) for the year (Total) PAT Margin %
FY17
FY18
(₹ in Million) FY19
2,315 906 39.12% 155 7% 12 34 122 11 0.48% -72
(74) -3%
2,224 940 42.29% 105 5% 13 34 109 -25 -1.13% -0.2
(31) -1%
2,075 863 41.60% 36 2% 20 33 88 -65 -3.14% -
(62) -3%
31
Key Operating Metrics
32
For further information, please contact
COMPANY:
INVESTOR RELATIONS ADVISORS:
VIP Clothing Limited CIN: L18101MH1991PLC059804 Mr. Ashish Mandaliya (CFO & Company Secretary) Tel: +91 -22 - 40209000 Email: investor.relations@viporg.com
Marathon Capital Advisory Private Limited CIN: U67190MH2003PTC143425 Mr. Amit Porwal Tel : +91-22-40030610 Email : vip.ir@marathoncapital.in